Derby set to have fastest growing economy in the East Midlands

Derby is expected to have the fastest growing economy of any city in the East Midlands in 2022, according to a new report.

The latest UK Powerhouse study, published by law firm Irwin Mitchell and the Centre for Economics and Business Research, predicts that the city’s annual year-on-year GVA growth in the fourth quarter of next year will be 2.9%, ahead of Leicester (2.6%) and Nottingham (2.3%).

The performance places Derby 11th overall out of the 50 largest local economies in the UK. Leicester is placed 26th, while Nottingham ranks 39th.

Hannah Clipston, partner at Irwin Mitchell, said: “The UK’s economy has undergone significant change over the last two years and this report highlights that the recovery is unlikely to be linear or even uniform.

“Over the next 12 months our report predicts that manufacturing’s output will grow by 3.5% whilst for hospitality it will grow by 35%.

“This has a huge impact on the variations that we are seeing in terms of growth in different locations and should be considered by the Government as it looks to level up.”

The report also examines to what extent disruption in the economy leads to innovation.

Hannah said: “Businesses have been incredibly resilient over the last couple of years and have faced many disruptors including Covid, labour shortages, supply chain issues and high fuel costs.

“Our latest study recommends that irrespective of the sector they’re in, organisations should be adopting technology more quickly and adapting to the UK’s new status after Brexit.

“All of this will require a shift in approach and for innovation to be celebrated and nurtured more than it is currently.

“It’s vital that businesses are encouraged to follow this path and receive the right level of support in order to help them succeed.”